Tuesday, April 28, 2009

The McDonald's Approach




Buyers love new construction. Buyers who want to buy new construction should always have an agent before walking into the sales office. Let me say this again. Buyers should always have a sales agent before walking into a sales office. Pick one out of the phone book if you have to.

The order takers in the sales office work for the seller. THEY WORK FOR THE SELLER. Not you. The seller. They will give you fancy coffee, soda, bottled water, candy etc. They will show you around the models. But the are essentially order takers. See these folks get a flat rate with a small commission. They work for fancy companies who promise the developer an on site staff. These sales companies ofter have grandiose names. They really should be called the McDonald's of Condo Sales, Marketing Midgets, Buy What We Want To Sell, or some other name that best describes they're sales philosophy.

In the boom times, this approach made sense. Hire order takers and process the next person in line. McDonald's is very good at this. You want a cheeseburger the way they make it...Like 10 seconds later its in the bag... Same way as the last one you ate, same one as you got in Iowa two weeks ago. In today's market, buyers want more, they want extras, they want customization, they want extra cheese no pickles. This is where the order taker breaks down. These sales staffs work for the burger maker. Without an agent (who costs you nothing) there's not one to make sure you get what you want. You're at the whim of a seller's agent.


Ever gone through the drive thru. You get your bag, make sure there's a straw and napkins, you pull back on the highway, open up your burger and they screwed it up? You curse but you're stuck. Don't get stuck on your new construction. Bring an agent.

Monday, April 27, 2009

Craigslist Killer

Wow. I can't crawl under a rock and avoid the Craigslist Killer. There I am Friday night watching the Red Sox-Yankees game. (Before I fell off my couch in jubilation during the 9th inning comeback.) I'm toggling over to some show about the Craigslist killer. The police admit this guy got caught because he was stupid. Imagine if he had a smidge of tech training (or watched The Wire.) He gets a burner cell phone (Stringer Bell would be proud) maybe an IP spoofer, a fake email address and uses an internet cafe across town. BAM its that simple and he's a ghost.

And I get to thinking... Every For Sale By Owner should be watching this. Imagine Mr. or Mrs. Seller puts an ad online or in the paper. Craigslist Killer Guy (CKG) comes a calling. Probably chats them up. Sellers always say too much...."Oh my husband won't be home at 5pm but I'll be there." CKG even gets to see cool pictures of your stuff. If you've got nice furniture, you probably have an ipod, video camera, a watch , jewelry etc. It's like online shopping for CKG. In this economy, people are looking for a way to make a living. So the FSBOs put themselves at risk just to save money on a place they won't be able to sell.




These are desperate times for some. Think I'm kidding, last week a guy dressed like a waiter with a yellow tie in Hoboken and walked off with people's cash, twice in the same night.

Hoboken Real Estate Condos
Under contract in April to date: 36
Information deemed reliable but not guaranteed

Sunday, April 26, 2009

PSA

NJ Housing Mortgage Finance Agency Offers Cash Advance for First-time Buyer Costs
Program offers up to $5,000 cash to qualified first-time home buyers

The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.
The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.

"This is a powerful incentive that will allow potential first time home buyers to actually enter the market because this cash advance will help them meet down payment requirements or pay for closing costs that might otherwise be an obstacle to a first-time buyer," said Jarrod C. Grasso, RCE, executive vice president of NJAR®.

The cash advance is available to first-time home buyers who:
1) Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
2) Are qualified for the tax credit offered as a part of the federal stimulus program
3) Pledge to apply the proceeds of their tax credit to repay the cash

View the full details of the NJHMFA's First-Time Home Buyers Tax Credit Loan Program (TCLP).

Friday, April 24, 2009

Advice You Just Can't Take







When purchasing or selling a home, you'll need to rely on a number of professionals. Realtors, Home inspectors, mortgage brokers, lawyers etc. Use each for their core expertise..... As a realtor, I do not give legal advice. I even make you sign a paper saying that I do not give legal advice. So if you want legal advice speak to a lawyer.

If you want advice on home inspection issues, ask a home inspector. If you want advice on what it all means in terms of your transaction ask a realtor. The problem comes when one professional
encroaches into an area that is not there expertise. Quite often it is the attorney, since they have a law degree and I only have an MBA, who thinks they know everything. Sometimes they make claims to their clients under the guise of "protecting them". Really the lawyers haven't checked with the other professionals on your team to figure out the best way to effectuate the desired outcome. So buyers and sellers get scared and listen to the lawyer. Don't be one of these people. As a buyer or seller, you are the quarterback. Get you team in a huddle and call the play on first down and not when it's fourth and long.




If a deal goes bad over a correctable item, its a shame. Be more proactive. Hound everyone.

THE Q1, 2009 Hoboken Real Estate Report is available at http://www.hobokenhomefinder.com/

Hoboken Real Estate Condos
Total Active 570
1Br 192
2Br 301
3+ Br 63
Information deemed reliable but not guaranteed

Wednesday, April 22, 2009

Where's My Car?




In the past we've covered the $4.2 million dollar condo with parking as an extra monthly cost. This is a tough enough pill to swallow. Here's the latest trend....I've noticed several high end properties on Hudson St. with no parking. Not even a rental spot??? Buy a $2 million brownstone and park on the street! I don't get it. Why would the seller not rent a space in the Shipyard Garage. Prepay 2 years. It's a $5,000 give away. There are so few high end buyers willing to open their wallets. (One multi-family and zero single family homes closed in Q1,2009.)


Why give someone a reason not to buy. It's like the old Fram filter commercial. You can pay me now or pay me later.

Hoboken Real Estate Condos Since 4/1/09
New 170
Price Changes 131
Information deemed reliable but not guaranteed

Tuesday, April 21, 2009

C'est La Vie

Hoboken Condos Number of Sales By Month Chart:







The Hoboken Real estate first quarter report will be coming out tomorrow. No real surprises. I do think that what is surprising is the number of condos sold for the first half of April is only 17. If you account for a 45-60 lag time, you would think that the lower interest rates and tax credits might have shaken the buyer tree a bit....

Good news for sellers. Lots of appointments. A big office in town had almost 200 appointments last weekend. Could have been that the excellent weather coaxed a few buyers out of their boroughs. (note the double entendre) I have heard that if a buyer sees his shadow on May 2nd there will be six more weeks of the spring market.



My High school french is rusty but isn't this movie being billed as A Day Without End?

Thought of the day: 8 times as many millionaires are made in a down market than an up market.

Monday, April 20, 2009

Stupid Sellers


I can't believe the dumb little things that sellers do in this market. It's really what they don't do that amazes me. I mean you have 12 months worth of inventory and you can't get out of your own way.
I've had the little things like a dirty dishes left in the sink, grout that is as black as burnt toast, ripped window screens, missing cabinet pulls.... Here's the latest. I showed a condo at the Sky Club and the key gets stuck in the lock. Fifteen minutes I tried, the client tried, the doorman tried. The key would not come out. Do you think this just happened out of the blue? A solar flare knocked the tumbler out of whack? Could that key have been sticking for days? weeks? months? a squirt of wd40 maybe.

Here's the point. I know a really good handy man that will come over for $200 and spend 8 hours fixing anything that needs to be fixed. (not a licensed electrician/plumber) In eight hours you can get just about every little thing done. Everything works no surprises. I was at a conference last week and like a speaker said... "a buyer goes into a kitchen and opens the oven, if the 50 cent light bulb is out, the buyer isn't thinking its' only 50 cents, he's thinking I need a new twenty five thousand dollar kitchen." Bam condo not sold because of a 50 cent light bulb. Think I'm overstating it? How much did it cost for that o-ring that took down a billion dollar space shuttle?




Maybe the seller needed the 50 cents for a meter since there is no deeded parking at the Sky Club.

Hoboken Real Estate Condos
Available 548
Studios 13
1BR 189
2 BR 282
3+ Br 64Information deemed reliable but not guaranteed

Wednesday, April 8, 2009

The Hoboken Discount.



Thanks to Phil for providing some research into the Hoboken First Quarter numbers. Sold condos are selling for a 4.9% average discount to the last ask price before contract and 8.4% discount over the initial ask price.
So a condo originally listed for $500,000 will sell for $458,000 on a final ask of $481,600.

Speaking of price reductions... Just went to an open house today: a nice one bedroom, walkable to the PATH. About a year ago a identical layout in the same building sold for $405,000. Given the market decline or the past year (15-17%), the fact that this one doesn't have a washer dryer, this one is two more flights of stairs above and doesn't have rental parking available...what would you price this at? If you said north of $350,000 then you too can start talking price reductions.




Did I mention the cat liter box with no hood right when you walk in? With over 180 other one bedroom choices, I wonder whether the seller wants to move in 2009.

Hoboken Real Estate Condos
Available 531
New last 8 days 72
Price change last 8 days 47
Information deemed reliable but not guaranteed

Tuesday, April 7, 2009

One Bedroom Doldrums.



18 Months of Inventory. That's about what we are looking at for one bedroom condos in Hoboken. ugh. or better yet, ugly. Where are those first time homebuyers lining up with their Obama Bucks?

Of those 187 one bedrooms for sale, the median ask price is $387k and the average DOM is 87 days and counting. I wish I were in the market for a one bedroom. You can practically steal one.

Sellers: Time for a price reduction or turn it into a rental. Otherwise you are not going anywhere soon.



Hoboken Real Estate Condos
1 Brs Q1, 2009
Available 182
Under contract 26
Sold 33

Information deemed reliable but not guaranteed

Friday, April 3, 2009

April Showers

The Boys of Summer are right around the corner... The spring market is speeding by. Which means tax time....
A good link from Bankrate. On 7 housing tax laws you need to know.



A good article about Mortgage rates.
And one on Jumbos




Call your accountant. Call my accountant. Using a professional saves money in taxes, in real estate, and in life.
Hoboken Real Estate Condos
Available 534
Median DOM 65
Median Ask Price $529k
Information deemed reliable but not guaranteed

Thursday, April 2, 2009

In Like A Lion.



Out Like A Lamb.

A quick look at the March 2008 vs March 2009

Total Condos under contract:
78 vs. 38 a 52% decline.

Studios and One Bedrooms
40 vs. 9 a 78% decline.

Two Bedrooms
35 vs. 25 a 29% decline

Three Bedrooms
3 vs. 4 a 33% increase.

I wonder when those first time home buyer credits will start to make an impact?

Hoboken Real Estate Condos
The March Numbers:
Under contract: 38
1 Br 9
2 Br 25
3 Br 4

Information deemed reliable but not guaranteed